Dáil Éireann Debate, Tuesday - 10 November 2015
83. Deputy Michael Colreavy asked the Minister for Communications, Energy and Natural Resources if he will take action to resolve the issues identified in the Comptroller and Auditor General’s report for 2014 relating to the implementation of Eircode. [38962/15]
View answerThe Comptroller and Auditor General, in his Report on the Accounts of the Public Services 2014, included a chapter on the Development of Eircode, the National Postcode System.
The C&AG made a number of key recommendations to my Department based on his findings in carrying out the review. The recommendations are in the following areas:
- improved governance structures on projects;
- the inclusion of all costs when preparing cost benefit analyses and when presenting proposals to Government;
- improved processes around procurement.
The recommendations were accepted by the Secretary General of my Department, in his capacity as Accounting Officer.
The findings, the detailed recommendations, and the response of the Accounting Officer, are set out at Chapter 13 of the C&AG's Report.
Taking the key areas identified in the report, the position is as follows:
- the Department aims to ensure that robust governance arrangements are in place for all large projects that it funds. A formal project management approach was used during the implementation of the postcodes project with all milestones, deliverables, costs, issues and risks tracked and actively managed. The concern of the C&AG related primarily to the pre-implementation stages of the project and the Department is taking those lessons into account in the management of other major projects it is currently dealing with.
- In relation to costs, my Department will include all costs that can be estimated when seeking Government approval for a project. The report made a number of recommendations in relation to the cost benefit analyses that were carried out on the project. The Department is satisfied that the approach taken in developing the cost benefit analyses complied with Department of Public Expenditure and Reform guidelines in this area. The report did raise a specifc issue around the appropriate discount factor to be used. The Postcode Project used a higher discount factor which was deemed a conservative approach to take at the time given that it resulted in a reduced net present value. However, in the interest of comparability, my Department will ensure that the recommended discount rate is used in all future projects.
- In relation to Procurement, my Department has established a dedicated procurement unit which assists in the planning and delivery of procurement. All proposed procurements must be forwarded to the procurement unit prior to the commencement of the process. A comprehensive procurement training course has also been rolled out in the Department this year. This will help ensure that all procurement activity is fully compliant with best practice.
